Emre Yumlu 
The United Kingdom has taken a major step toward becoming a global leader in crypto by announcing new draft regulations that integrate digital assets into securities legislation.
On April 29, UK Finance Minister Rachel Reeves unveiled new plans that outline a comprehensive regulatory framework for digital assets. According to a statement from the Treasury, under the new rules, crypto exchanges, brokers, and service providers will be supervised similarly to traditional financial institutions in terms of transparency, consumer protection, and operational resilience.
Six New Activities to Fall Under FCA Oversight
With the Financial Services and Markets Act (Cryptoassets Order) set to take effect in 2025, six new types of activity—including crypto trading, custody services, and staking—will be subject to regulation.
Unlike the European Union’s MiCA approach, the UK is adopting a stricter regulatory stance on crypto. This includes capital requirements, governance standards, market abuse rules, and disclosure obligations.
Dante Disparte, Circle’s global policy chief, described the move as a “meaningful step” toward building a rules-based digital asset economy. He emphasized that regulatory clarity offers the predictability needed to grow responsible digital financial infrastructure.
Stablecoins to Be Defined as Securities
Under the new draft, stablecoins will no longer be considered e-money but instead classified as securities. This means fiat-backed tokens issued in the UK must comply with prospectus-like disclosures and redemption procedures. Foreign stablecoins, however, will only be allowed through authorized platforms.
Disparte highlighted the importance of predictability in regulations, stating, “A clear framework without arbitrary enforcement supports responsible growth.”
FCA Approval Required for Foreign Crypto Platforms
Another major shift is the requirement for FCA authorization for foreign firms looking to access the UK retail market. The “overseas persons exemption” will be limited to specific B2B relationships, effectively ring-fencing retail operations.
Staking services will also come under regulatory scope. Liquid and delegated staking models will require FCA registration, while solo stakers and interface-only providers will be exempt.
New custody rules will apply to systems that grant unilateral transfer rights, which may introduce additional burdens for certain DeFi structures.
Zade noted that the broad definition of staking might include decentralized models, and restrictions on credit card purchases—aimed at high-risk use—could discourage retail participation.
Expected to Take Effect in 2026
The final version of the new rules is expected to be announced in 2026. With this, the UK is set to follow a roadmap similar to that of the European Union, aiming to create a clearer regulatory framework for digital assets.
You can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram ,YouTube and Twitter channels for the latest news and updates.